(RTTNews) - Thursday, athletic footwear and apparel retailer Foot Locker, Inc. (FL | Quote | Chart | News | PowerRating), reported breakeven results for the second quarter, compared to profit last year, primarily due to a 15.6% decline in sales. The company's aggressive actions taken to control expenses and inventories minimized the impact of lower than anticipated sales in U.S. businesses on second quarter earnings.
The New York-based company posted second quarter earnings at breakeven, compared to profit of $18 million or $0.11 per share in the same period last year.
Loss from continuing operations for the quarter was $1 million or breakeven per share, compared to income of $18 million or $0.11 per share in the previous year period.
On average, thirteen analysts surveyed by Thomson Reuters expected the company to report earnings of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter declined 15.6% to $1.099 billion from $1.302 billion in the corresponding period last year. Total sales, excluding the effect of foreign currency fluctuations, declined 11.8% for the quarter. Eleven analysts had a consensus revenue estimate of $1.17 billion for the quarter. Comparable-store sales decreased 12.1%.
Cost of sales for the quarter was $819 million, down from $941 million in the previous year period. Selling, general and administrative expenses declined to $252 million from $299 million a year ago. Depreciation and amortization expenses was $28 million, down from $33 million in the prior year period.
Total expenses for the quarter decreased to $1.101 billion from $1.274 billion in the comparable period last year.
The company's Chairman Matthew Serra said, "We successfully offset some of the impact of our sales shortfall by reducing our selling, general and administrative expenses, negotiating favorable occupancy costs and benefiting from lower depreciation expense. Additionally, we benefited during the quarter from our improved inventory position, as our total markdown activity was favorable to last year."
The company's merchandise inventory at the end of the second quarter was $1.284 billion, down 8.4% from $1.401 billion last year. On a constant currency basis, merchandise inventory declined 6.1% from last year.
The company emerged from the macro external environment that affected the second quarter results with a strong cash balance and improved merchandise inventory position. Until the company sees enduring signs of a pick-up in overall consumer spending, it plans to continue to control the key controllables of business, with an objective of reducing operating expenses and optimizing inventory management. Additionally, a strong commitment to maintaining strong financial position and generating positive cash flow will remain a high priority for the company.
For the first half, net income was $31 million or $0.20 per share, compared to $21 million or $0.13 per share in the previous year period. Previous year's results included store closing expenses and a non-cash impairment charge totaling $18 million, after tax. Year-to-date net income in 2008, before the store closing expenses and impairment charge, was $39 million, or $0.25 per share.
Sales for the six months dropped 11.3% to $2.315 billion from $2.611 billion in the preceding year period. Excluding the effect of foreign currency fluctuations, total sales declined 7.0%. Comparable-store sales decreased 7.3%.
During the first half, the company opened 26 new stores, remodeled/relocated 89 stores and closed 52 stores. At August 1, 2009, the company operated 3,615 stores in 21 countries in North America, Europe and Australia. In addition, 19 franchised stores were operating in the Middle East and South Korea.
FL closed Thursday's regular trading at $11.30, up $0.13 or 1.16%, on a volume of 4.26 million shares. In the last 52-week period, the stock traded in the range of $3.65 - $18.19, on a three-month average volume of 2.80 million shares.
For comments and feedback: contact editorial@rttnews.com
Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
The New York-based company posted second quarter earnings at breakeven, compared to profit of $18 million or $0.11 per share in the same period last year.
Loss from continuing operations for the quarter was $1 million or breakeven per share, compared to income of $18 million or $0.11 per share in the previous year period.
On average, thirteen analysts surveyed by Thomson Reuters expected the company to report earnings of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter declined 15.6% to $1.099 billion from $1.302 billion in the corresponding period last year. Total sales, excluding the effect of foreign currency fluctuations, declined 11.8% for the quarter. Eleven analysts had a consensus revenue estimate of $1.17 billion for the quarter. Comparable-store sales decreased 12.1%.
Cost of sales for the quarter was $819 million, down from $941 million in the previous year period. Selling, general and administrative expenses declined to $252 million from $299 million a year ago. Depreciation and amortization expenses was $28 million, down from $33 million in the prior year period.
Total expenses for the quarter decreased to $1.101 billion from $1.274 billion in the comparable period last year.
The company's Chairman Matthew Serra said, "We successfully offset some of the impact of our sales shortfall by reducing our selling, general and administrative expenses, negotiating favorable occupancy costs and benefiting from lower depreciation expense. Additionally, we benefited during the quarter from our improved inventory position, as our total markdown activity was favorable to last year."
The company's merchandise inventory at the end of the second quarter was $1.284 billion, down 8.4% from $1.401 billion last year. On a constant currency basis, merchandise inventory declined 6.1% from last year.
The company emerged from the macro external environment that affected the second quarter results with a strong cash balance and improved merchandise inventory position. Until the company sees enduring signs of a pick-up in overall consumer spending, it plans to continue to control the key controllables of business, with an objective of reducing operating expenses and optimizing inventory management. Additionally, a strong commitment to maintaining strong financial position and generating positive cash flow will remain a high priority for the company.
For the first half, net income was $31 million or $0.20 per share, compared to $21 million or $0.13 per share in the previous year period. Previous year's results included store closing expenses and a non-cash impairment charge totaling $18 million, after tax. Year-to-date net income in 2008, before the store closing expenses and impairment charge, was $39 million, or $0.25 per share.
Sales for the six months dropped 11.3% to $2.315 billion from $2.611 billion in the preceding year period. Excluding the effect of foreign currency fluctuations, total sales declined 7.0%. Comparable-store sales decreased 7.3%.
During the first half, the company opened 26 new stores, remodeled/relocated 89 stores and closed 52 stores. At August 1, 2009, the company operated 3,615 stores in 21 countries in North America, Europe and Australia. In addition, 19 franchised stores were operating in the Middle East and South Korea.
FL closed Thursday's regular trading at $11.30, up $0.13 or 1.16%, on a volume of 4.26 million shares. In the last 52-week period, the stock traded in the range of $3.65 - $18.19, on a three-month average volume of 2.80 million shares.
For comments and feedback: contact editorial@rttnews.com
Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
For full details on Foot Locker Inc (FL) FL. Foot Locker Inc (FL) has Short Term PowerRatings at TradingMarkets. Details on Foot Locker Inc (FL) Short Term PowerRatings is available at This Link.
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